In last Friday’s MMI, we revealed the results of a survey conducted by Moberly City Manager Andy Morris in February of this year (MOBERLY COSTS — How does our city compare to Macon, Columbia, others? Hint: Not well, May 3, 2013). Morris gave the survey to the MMI. It placed the Magic City amongst some of the lowest (between 16 other surveyed cities, including the aforementioned Macon and Columbia) in terms of median annual household income ($36,882), and amongst some of the highest in cost of living (10.7 percent of median annual income).

We decided to correspond with Morris, discussing the results of the study, and trying to figure out how the city of Moberly is working to fix this problem. The following are the answers Morris gave to those questions asked by the MMI:

MMI:How did Moberly get this way? Why are our taxes and water bills so high, despite our income levels being so low? What normally contributes to things like this in cities?

Andy Morris: The results of the survey were a bit surprising. Not eye-opening, but I knew going into this our citizens had low to moderate income levels. What surprised me was our high cost factors relative to lower income levels in Randolph County, compared to the other cities in the study.

It is worth noting the cost ‘drivers’ identified in this study. A little over half the costs identified in the study are property taxes. Cities receive approximately 12 percent of their total revenue from this. School districts, by comparison, receive 63 percent of their total revenue from this. Admittedly, our property taxes rank rather high in this study. Our study also identified sales tax paid on a defined amount of taxable sales. This constitutes 22 percent of this measure. Water and sewer costs comprise 27 percent of the expenditures. Moberly’s water costs ranked near the middle of the other cities surveyed, while the sewer costs ranked rather high, at the third most expensive.

(Editor’s note: Given the opportunity, Morris did not comment specifically on what he felt contributed to the increased tax and utility rates in the city.)

MMI:What are you doing about increasing income levels? Is there anything you CAN do, as a city, in regards to them?

AM: Moberly is blessed with organizations, groups, and individuals that make an indelible difference in enhancing our lives and alleviating poverty. The United Way works with social service and community agencies to provide monies and materials to those in need. The Buddy Pack Program provides food primarily to elementary students during the school year that are in need of assistance. This program, initiated by Francine Nichols with Moberly Public Schools, serves approximately 300 students a week. The Randolph County Health Department offers a variety of programs enhancing health, safety, and wellness to our citizens. The City of Moberly, although not tasked with addressing human welfare needs, can, in fact, offer its support to agencies that do, and [we] can target specific areas of need.

Page 2 of 3 - The City of Moberly offers financial and administrative assistance to the Moberly Area Economic Development Corporation. Their efforts enhance both job creation and capital accumulation in our community. Their efforts to increase job creation is our biggest weapon against poverty. The City of Moberly also lends its financial support to the Moberly Area Chamber of Commerce. Debbie Miller, Executive Director of the Chamber, plays a lead role in marketing our community to visitors and sponsors Railroad Days and community forums.

MMI:What can citizens do to lessen their cost of living?

AM: The City is considering a program that will allow utility customers to donate to a fund which will help assist customers who have financial challenges paying for their utility bills.

MMI:What is the city doing to actively change the high cost of living prices in Moberly?

AM: This summer, volunteers, with money appropriated by our City Council, will begin painting homes specifically targeted at people of low to moderate income.

We [also] need to be more sensitive to the high cost of water and sewer, particularly when the county median household income stands at less than $37,000 — third lowest in the survey. In the last three years, utility rates have increased by approximately 15 percent. As an example, inflation in 2012 ran at just 1.7 percent. The City needs to recognize the effect these increases have on our customers and temper these rate increases.

[Lastly,] City personnel started a program in early 2013 to ease financial burden on purchases of certain toiletries and cleaning supplies. The Moberly Area Salvation Army has adopted this program, and will expand it to the city and county. This program takes items such as laundry detergent, body wash, dish washing liquid, tooth paste, Pine-Sol, etc, and puts it in a cleaning bucket. The bucket is then given to people of low to moderate income.

These programs, in their totality, will not eliminate poverty or ease the burden relative to our cost of living; this may not even reduce it. The alternative is to do nothing to address these concerns, and that is not a viable option. [As the Chinese Proverb goes:] ‘It is always better to light one candle than curse the darkness.’

MMI:How are you marketing the City of Moberly with such a high cost of living? Has it made that difficult?

(Editor’s Note: Given the opportunity, Morris did not respond to this question, so the MMI called the Moberly Area Economic Development Office.)

“No, [it hasn’t made it difficult,]” said MAED Vice President of Economic Development David Gaines, “because the city has been making re-investments into the utility infrastructure. The longterm investment in their wastewater and freshwater — it doesn’t come for free.”

Page 3 of 3 - Gaines said that the city has been replacing their existing pipelines in order to accomplish this feat. They now have 10- and 12-inch pipelines that can sustain large corporate water usage.

“Communities have to replace that,” he said. He called such a “benefit to the residents and the city.” It makes the city an attractive destination when they have “the ability to handle [the needs of possible future businesses].”

Gaines did note, however, that utility rates in Moberly compared very favorably with those along the coasts.

When asked if he believed that the rates were high, or a detriment to those businesses in Moberly, Gaines said: “I’m not sure I can give you a fair comment on the question.”

He asked that we address that with the business owners in the community, and then requested not to be quoted any further.

Gaines called the MMI back on Friday morning, to clarify and expand on his prior statements.

“The city’s municipal rates are only one factor in considering a community to do business in,” he said. “What’s really important is the access to quality workers and how easy it is for them to transport their product to other parts of the country.”

He called Moberly’s workforce and centralized location “an asset to this region of the state.”

“When you look at the big picture, Moberly is still a very attractive place to do business,” he said. “We’re consistently rising above other cities in the Midwest.”